used car Archives - My Car Credit

Help! Car Finance is Taking Too Long

Car finance can be a fantastic way to purchase a new vehicle. But what happens when the process seems to drag on? Don’t stress just yet. If you’re worried about car finance taking too long, this article is for you. Read on as we explore common reasons why car finance may be taking too long and share expert tips on how to speed up the process.

The waiting game: common reasons for delays

Car finance taking too long? Before we explore solutions, let’s identify some common culprits that can prolong the process:

Incomplete documentation

One of the most common reasons for delays is documentation. Whether you’re missing proof of income, failed to verify your identity or submitted a blurry photo of your driver’s licence, incomplete paperwork can grind the car finance process to a halt.

Lender processing times

While some lenders pride themselves on swift approvals, others may take longer to process applications. If speed is a priority, it’s worth working with lenders with an excellent track record when it comes to fast approvals.

Credit issues

Credit checks are a standard part of the car finance process. No surprises here – issues or discrepancies with your credit history can slow down the application process.

Communication breakdown

Car finance taking too long? Miscommunication between parties involved in the process can lead to delays. This includes including borrowers, brokers, lenders and dealers.

Tips for speeding up the process

Now that we’ve identified potential roadblocks, let’s spotlight steps to get your car finance application back in the fast lane.

Be proactive with documentation

Give yourself the best shot of success and ensure all documents are complete, accurate and up to date before submitting your application. This includes proof of identity, income verification and any other documents requested by the lender.

Work with a broker

Teaming up with a car finance broker can drastically speed up the car finance process. As well as traditional lenders like high street banks, brokers work with alternative creditors known for their quick turnaround times. Working with a broker is one of the best moves you can make if you’re concerned about car finance taking too long.

Stay on top of communication

Maintain open lines of communication with your broker, lender and dealer throughout the process. Quickly respond to requests for additional information to prevent unnecessary delays.

How My Car Credit can help

At My Car Credit, we understand the frustration of car finance taking too long. That’s why we’ve created a streamlined process designed to get you behind the wheel in no time. With our extensive network of lenders and expert guidance, we have what it takes to turbocharge the process for quick car finance. Help is always available, so don’t hesitate to reach out to My Car Credit for personalised support on your car finance journey. We’re with you every step of the way, from initial application to keys in hand.

To check eligibility for car finance, My Car Credit has developed a car finance calculator to allow you to crunch those numbers around your next car. Give it a try and start your car buying journey today.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

Instant Car Loan: Does It Exist?

Person using phone to get an instant car loan

Are you dreaming of a new set of wheels but dreading the process of securing car finance? Fear not. Instant car loans take the stress out of auto finance and make it easy to lock in a lender. Of course, you are entering an official financial agreement which means there is some red tape to navigate. Read on to find out more about the process and decide if an instant car loan is right for you.

Instant car loan – myth or reality?

Picture this – you’ve found the car of your dreams and can practically feel the keys in your pocket. But before you can turn the ignition and put your foot down on the accelerator, there’s financing to consider. Enter the instant car loan – a fast and easy way to secure auto finance.

So, what exactly is an instant car loan? Put simply, it’s a finance option designed to give you quick access to funds. This means you can drive away in your chosen vehicle without delay. Loans are extended for all types of makes and models, from SUVs and estates to saloons and sports cars.

How does it work? Let’s pop the bonnet and take a closer look:

How instant car finance works

The appeal of an instant car loan lies in the streamlined process. Here’s a step-by-step breakdown of how it all works:

Easy online application

Forget queuing at the bank or filling out mountains of paperwork. With instant car finance, the journey begins with a simple online application. With just a few clicks you can be on your way to securing the funds you need.

Instant decision

Using advanced algorithms and instant search technology, lenders assess your application in record time. This allows them to make a preliminary decision in minutes, rather than days or weeks.

Digital documents

While the instant decision may leave you daydreaming of the open road, there are still a few hoops to jump through before funds hit your account. You’ll need to provide supporting documentation, such as proof of identity, income and credit history, to verify the information provided in your application. Think of it as dotting the i’s and crossing the t’s to ensure everything is in order.

Final approval and funding

After documents have been received by the lender the final approval process swings into action. The lender conducts a thorough review to ensure everything checks out. Once the final stamp of approval is given, funds are transferred to your account. In some cases, the lender may purchase the car outright on your behalf. In both scenarios, you’ll repay the loan in monthly instalments, along with interest and any additional fees.

Reality check: understanding the fine print

Before you hit the motorway, let’s address the elephant in the room – the reality check. While the appeal of instant car finance is undeniable, it’s important to recognise that approval is preliminary. The “instant” decision you receive is a promising sign that you meet the initial criteria set by the lender. However, to seal the deal and secure funds, additional steps are required, including that should you progress, some lenders may perform a hard search on your credit file.

Your instant car loan: the final steps

So, how do you get the green light for your instant car loan? Once you’ve received your instant decision, the next steps involve submitting supporting documentation and passing a final review process. This can include a hard credit check which sees the lender take a deep dive into your financial history using credit reference agencies (CRAs) like Equifax, Experian and TransUnion. All three CRAs have access to information about British adults and their credit histories. This information is used to generate a credit score which is used to assess your risk as a potential borrower.

In the final stage you’ll also lock in the terms and conditions of your loan. This includes the total amount you’ll borrow, length of your agreement, monthly repayments and APR.

The role of brokers

Most banks and high street lenders are too cautious to issue instant auto finance approval. This is where a broker can really boost your chances of success. Instead of partnering exclusively with a single lender, brokers work with multiple lenders. This exposes your application to far more potential creditors, including those specialising in auto finance for borrowers with less-than-perfect credit scores.

Instant car finance – a road worth exploring

While the concept of an instant car loan isn’t necessarily as simple as it sounds, it’s a road worth exploring if you’re seeking swift approval and streamlined financing solutions. It’s a fast way to get the ball rolling and get an idea of your different options, including what type of terms, monthly repayments and APR rates to expect.

Of course, it’s important to approach instant car loans with a pinch of salt and recognise that approval is preliminary. By understanding the process and being prepared to navigate the additional steps required, you can enjoy the benefits of instant car finance and hit the road without delay.

Hit the road with My Car Credit

Ready to get behind the wheel? Whether you’re in the market for a PHEV Kia Sportage to slash your tailpipe emissions or an athletic Audi A3 with a luxe trim level, apply for your instant car loan today and take the first step towards automotive ownership.

As part of Evolution Funding, the UK’s largest motor finance and technology provider, My Car Credit leverages award-winning technology to improve your chances of acceptance. Our unique matching algorithm ensures you find the best product and lender for your circumstances, at a competitive rate. We’re passionate about seeing every quick car finance application right through to the end, right through to the final cash deposit in your bank account.

A great place to start is by using our online car finance calculator. Here you can get an idea of acceptance probability and cost, all without affecting your credit score. Please note that should you progress, some lenders may perform a hard search on your credit file.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

How Long Does It Take to Buy a Car?

7 Advantages of Used Car Hire Purchase

How Much Does Car Finance Cost? Check Now!

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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7 Advantages of Used Car Hire Purchase

Car in sunset with people camping all bought on Hire Purchase

Used car finance has become an increasingly popular way of drivers getting behind the wheel of a nearly-new vehicle. Used car hire purchase is just one type of used car finance – and one of the most popular.

This article will break down what used car hire purchase is, and outline the advantages of this kind of car finance agreement. Finance your next ‘new to you’ used car by reading on.

What is used car hire purchase?

Used car hire purchase is just one type of car finance available to you.

With used car hire purchase, you’ll split the cost of your nearly-new vehicle over a set period of time. You’ll pay back what you borrow against this car over this designated time period via a series of affordable monthly instalments, plus interest.

You don’t own the car until you’ve paid in full, but it’s yours at the agreement’s end.

What are the advantages of used car hire purchase?

1. Flexibility

Used car hire purchase is one of the most flexible forms of car finance.

With this type of agreement, repayment terms are typically between one to five years, depending on how much you (the borrower) can afford to pay back each month. Choose to pay higher monthly repayments for a shorter borrowing period, or reduce these instalments with a longer repayment term. Remember that you’ll pay more interest the longer the agreement.

Used car hire purchase therefore has flexibility with how much you pay for your monthly instalments. You can always pay a larger upfront deposit for lower monthly repayments.

Some used car hire purchase agreements also allow you to pay off the agreement early, reducing the overall long-term cost. You’ll need to check with your lender whether you’re eligible for this kind of early termination.

2. Low initial deposit

Typically, you don’t have to front a big deposit with used car hire purchase. In fact, you should only expect to pay around 10% of your used car’s price on the deposit.

That said, you can also choose to pay more if preferred, which will then lower your monthly repayments.

3. Cost effective

A new car may have that ‘never been driven’ appeal, but you’re likely facing a hefty price tag for that privilege – and not all drivers can front that cost. What’s more, as soon as you drive off the dealer’s forecourt, its value significantly depreciates.

By choosing used car finance like a hire purchase agreement, you’re able to fund an affordable, reliable vehicle that won’t experience this extreme depreciation in value. Plus, your vehicle is less likely to drop in value during your ownership, too, meaning it’s a more stable and cost-effective investment overall.

4. Accessibility

Some types of car finance can be inaccessible for those with poor credit ratings.

Used car hire purchase is one of the easiest types of car finance to get approval for, making it a more accessible option for individuals with bad credit profiles.

In fact, at My Car Credit, we pride ourselves on providing car finance for drivers with poor credit scores.

5. No balloon payment

Used car hire purchase is just one kind of used car finance agreement. Another popular type is used car personal contract purchase (PCP).

With a used car PCP agreement, you’ll be expected to make a final balloon payment at the agreement’s end (plus an option to purchase fee and possible admin fees) in order to own the car. This can be expensive, and not all drivers have the cash to pay it.

With used car hire purchase, you won’t face this final lump sum – the car is yours at the end of the agreement.

6. Better control of finances

Saving up for a big deposit or balloon payment can take its toll on your financial situation. With used car hire purchase, there’s a fixed payment schedule where you pay the same every month for the entirety of the term.

You’ll benefit from fixed interest rates and monthly repayments – and know exactly what you owe each month and when you owe it. This puts you in better control of your finances, enabling you to budget accordingly.

7. No usage restrictions

A used car PCP agreement involves usage restrictions. If you cause unusual amounts of wear and tear to the vehicle, or if you exceed its annual mileage limit, you can be penalised.

With used car hire purchase, you don’t face any usage restrictions. Plus, you’ll also own the vehicle at the end of the agreement.

Does used car hire purchase have disadvantages?

As with any loan, it’s sensible to consider whether used car hire purchase is the best option for you.

Although this type of used car finance agreement is more flexible than PCP or a leasing deal, the monthly payments are usually higher. Plus, your deposit and term length will impact these repayments – higher deposits and shorter loan terms make for lower monthly instalments.

Used car hire purchase can therefore be a more expensive option for short term agreements (for example, those under a year).

Remember that if you miss out or default on any of your payments, this will negatively impact your overall credit score. Missed payments typically remain on your credit profile for six years. This can in turn impact future loan eligibility. What’s more, the car may also be taken away from you if you continue to miss your repayments.

Additionally, you won’t own the car until you’ve fully paid it off. So, you won’t be able to sell it or modify it until the agreement is complete.

Find the right used car hire purchase for you

My Car Credit offers a range of different used car finance agreements.

Use our online calculator to get a no-obligation quote for used car hire purchase in mere minutes. Simply input the amount you want to borrow and your ideal repayment term, and we’ll give you an instant, online decision.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Who is the Legal Owner of a Car on Finance?

Am I eligible for car finance?

How Much Car Finance Do I Qualify For?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Financing a Second-Hand Car: 4 Options

Friends going on a trip in a red car bought using car finance

It’s never been easier to find car finance for nearly new or used cars. Choosing to purchase a ‘new to you’ vehicle has many advantages. You’ll be able to split the cost of your vehicle into a series of affordable monthly instalments, potentially affording a better set of wheels than you would otherwise be able to. Plus, you’ll be improving your overall credit score.

But what options are there for financing a second-hand car? We break down how My Car Credit can help you to get behind the steering wheel of a nearly new or used vehicle below.

How to finance a used car

Used car finance is a catch-all term for car finance agreements that allow you to borrow money against a used or nearly new vehicle.

Remember to always do your research before purchasing a new or nearly new vehicle. You want to make sure that you’re in the know about everything from the vehicle’s condition through to its remaining warranty (if relevant), and its service history.

There are different kinds of car finance agreements that you can choose for your used car. The right deal for you will depend on your unique needs and circumstances.

It’s worth comparing the different kinds of used car finance available, so that you can make an informed decision and choose the right agreement for you. That way, you’re not forking out for anything you don’t need.

Financing a second-hand car – 4 options

Hire Purchase (HP)

HP used car finance is our most popular agreement. With HP, you can pay an initial deposit, followed by a series of monthly instalments. This initial deposit isn’t always necessary, but paying it means you’ll have lower monthly payments.

Your monthly outgoings are fixed, giving you greater budgetary control. You won’t face a final balloon payment, and will own the vehicle at the agreement’s end. Plus, you also won’t face mileage limits, or fines for excessive wear and tear.

HP used car finance is best for those looking to own their vehicle at the end of the agreement, and who’d benefit from no usage limitations. You will be expected to make higher monthly payments compared to other finance agreements.

Personal Contract Purchase (PCP)

With PCP, you’ll pay a deposit and regular monthly payments against your used or nearly new vehicle. These monthly payments are lower compared to other agreements (like HP) because you’ll pay a final lump sum (balloon payment) at the end of the agreement. This allows you to completely own the car. Alternatively, you don’t have to make the balloon payment and can hand the car back providing the car is in good condition and within the contracted annual mileage.

Personal Contract Hire (PCH)

PCH car finance can also be referred to as a lease agreement. Essentially, you’re renting the vehicle for a long-term period of time, before handing it back to the dealership. You’ll pay an initial deposit and can also benefit from features like breakdown and road tax coverage.

PCH used car finance is only suitable for those with good or excellent credit scores, who aren’t looking to own the car at the end of the agreement. You’ll also face charges if you exceed mileage limits or cause excessive damage.

Personal Loan

With a personal loan, you’ll borrow the full amount of the used or nearly new vehicle, paying this off via monthly repayments. Essentially, you’re buying the car outright, and you own it from the beginning of the agreement. This means that you can always choose to sell it any time after purchasing it.

A personal loan is the simplest financing option for a second-hand car, but is only suitable for those with a good credit score.

Is financing a second-hand car right for me?

There are many benefits to financing a second-hand car. You’re spreading the cost of what can be a very expensive purchase, potentially affording a nearly new vehicle that would be beyond your budget if you were buying outright. Plus, by making your monthly repayments according to schedule, you’ll improve your overall credit rating.

As with any finance agreement, if you fail to make your repayments, you’re at risk of losing the vehicle and negatively impacting your credit score.

Find out more about financing a second-hand car

Check out our post to find out more about your used car finance options. We also have a car finance calculator to help you do the maths on your next vehicle purchase.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Is There a Maximum Age Limit for Car Finance?

What is the Oldest Car a Bank Will Finance?

Check for car finance without affecting your credit score

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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What Happens if I Can’t Pay My Balloon Payment?

Woman stood by her car refinancing her balloon payment on a mobile phone

Buying a new car is exciting. Whether you’re looking for a family-friendly drive, or a two-seater sports car, finding a new set of wheels can be fun.

However, a car is also likely to be expensive. In fact, after a house, a car is probably the second highest expense you’ll ever face. Car finance gives you the option of breaking down that expense into manageable chunks.

There are plenty of different types of car finance agreements available. With our wide range of lenders, you are sure to find one that accommodates your needs and circumstances – even if you have a poor credit score.

This article will break down what a balloon payment is, as well as what happens and your possible options if you can’t afford to pay it.

What is a balloon payment?

In order to understand what happens if you can’t pay a balloon payment, it’s worth outlining what these are. You can also check out our guide to how balloon payments work for more detail.

In car finance terms, a balloon payment is a one-off lump sum plus an option to purchase and possible admin fees, that you owe at the end of your agreement if you wish to own the car.

Not all car finance agreements have a balloon payment. For both Personal Contract Purchase (PCP) and lease agreements, you’ll face a balloon payment at the agreement’s end. Because you’re making this final balloon payment, you’ll benefit from lower monthly repayments during the term of your agreement. By making this payment at the end of a PCP agreement, you’ll own the car outright. On the other hand, it simply makes monthly payments lower for a lease agreement with no option to own the car.

A balloon payment is optional with PCP, but not optional with a lease agreement. If you don’t want to own the car at the end of your PCP agreement, you can hand it back or choose another finance agreement with the same lender as long as the vehicle is in good condition, in line with the contract terms and within the agreed mileage.

What happens if you can’t pay your balloon payment?

There are a number of eventualities if you can’t afford your balloon payment.

Late fees or penalties

In some instances, you may face late fees or penalties by the lender. These are additional charges on top of what you owe for the balloon payment.

Default and repossession

If you don’t confirm to your lender what end-of-deal option you want, they may automatically try to take the payment. If you don’t have the available money, you may therefore end up defaulting on the finance agreement.

There are any number of steps that a lender can take if you default on a loan. Your account may be sent to a debt collection agency to try and recover outstanding payments. This will have consequences for your credit score and future loan viability.

Alternatively, the lender may try to initiate repossession of your vehicle. This essentially means they reclaim the vehicle as collateral for the debt. This also has consequences for your credit score.

Legal action

In more extreme instances, you may face legal action, which could lead to a court judgment against you. Depending on the court order, the lender may be allowed to seize collateral to make up for the debt. Alternatively, you may be subject to wage garnishment, where an employer is required to deduct money from your salary until your debt is paid off.

Impact on credit score

In any of the above instances, your credit score will suffer. Defaulting on your car finance agreement and experiencing repossession will negatively impact your credit rating. A lower score then reduces your future loan viability, making it harder to obtain agreements. You’ll also likely face higher interest rates and less appealing terms for any future loans.

What to do if you can’t afford your balloon payment

If you can’t afford your balloon payment, you have some options.

Refinance your balloon payment

My Car Credit offers balloon payment finance. This works like any other finance agreement. You’ll break down the lump sum of the balloon into manageable monthly repayments.

We can help individuals with all credit profiles, using our large panel of lenders to find an agreement that’s right for you.

Negotiate with the lender

If you think you can’t afford your balloon payment, contact your lender sooner rather than later. You may be able to renegotiate the terms of the loan, benefiting from an extension or refinancing the balloon payment.

Hand back the vehicle

With PCP car finance, you don’t have to make the final balloon payment. You can hand the vehicle back at the end of the agreement as long as the vehicle is in good condition, in line with the contract terms and within the agreed mileage.

However, this isn’t suitable for those who need their car on a daily basis. Plus, you’ll have to shop around for a new finance deal for your next set of wheels. By making the balloon payment, you’ll own the car outright, and can use it as you please.

Sell or trade the vehicle in

Depending on your circumstances and the agreement, you may be able to either trade in or sell your vehicle if you can’t afford the balloon.

Remember that you’ll only be able to do so if its market value is enough to cover the outstanding balance on your loan.

Discuss balloon payment refinancing with My Car Credit

You have options if you can’t pay your balloon payment.

At My Car Credit, we work with individuals with all credit profiles to help them find the right balloon payment refinancing. Use our online calculator to get an instant, no-obligation quote for your expected monthly payments, rate of interest, and total payable amount. Please note that should you progress, some lenders may perform a hard search on your credit file.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Can I Give My Car Back to the Finance Company?

How Much Does Car Finance Cost? Check Now!

HP, Conditional, PCP: The Lowdown on Car Finance Options

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

balloon payment finance car finance car finance options hire purchase Jan24 lenders PCP pcp balloon payment used car

Balloon Payments Explained: What, Why & How

Black Tesla driving down the road bought with a Balloon Payment

Car finance has lots of confusing jargon – and a balloon payment is one example. Consider this article your ultimate guide to the what, why and how of balloon payments.

What is a balloon payment?

There are many different kinds of car finance available, depending on your needs.

Certain agreements allow you to make a final lump sum (the balloon payment) at their end. Once you’ve paid this one-time lump sum, along with an option to buy purchase and possible admin fees, the car belongs to you.

How does a balloon payment work?

A balloon payment works as a one-off lump sum you can pay at the end of your car finance agreement if you want to own your car.

With PCP, the one-off balloon payment is optional. You don’t have to pay it if you want to hand the car back or opt for a new finance agreement on another car.

The balloon payment is calculated based on the expected depreciation of your car (also known as the Guaranteed Minimum Future Value). It’s a fixed cost, meaning that no matter how much the value of your car fluctuates, it won’t rise.

Why choose car finance with a balloon payment?

There’s more than one type of car finance that allows you to own the car outright at the end of your agreement. With HP (hire purchase), you can own the car without making a final balloon payment (although there’s usually some admin fees to pay).

With that in mind, why would you want to choose car finance with a balloon payment?

HP finance has many benefits. However, because you’re not paying a final balloon fee, you’ll make higher monthly repayments compared to a PCP agreement.

A car finance option with a balloon payment is, therefore, a better choice for you if you want lower monthly repayments and if you regularly update your wheels.

What happens if I can’t afford my balloon payment?

If you’re keen to own your car outright at the termination of your finance agreement but can’t afford the balloon payment, don’t panic.

At My Car Credit, we understand that not all drivers have the cash for their balloon payment. That’s why we have balloon payment finance. With this agreement, you’ll break down your final balloon payment into manageable monthly instalments.

Apply with balloon payment finance with My Car Credit

No matter your circumstances, you can check if you are eligible for car finance with our handy online calculator. Our initial credit check is only a soft search, too – meaning it won’t impact your credit profile! Please note however that should you progress, some lenders may perform a hard search on your credit file.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What Happens if I Can’t Pay My Balloon Payment?

What is CS Car Finance?

Can I Give My Car Back to the Finance Company?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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How Do Balloon Payments Work?

Red and black cars bought using a Balloon payment

One of the many benefits of car finance is its flexibility. The range of car finance agreements means you’re guaranteed to find one that works for your unique needs and circumstances.

With that said, this range of options may make your decision feel overwhelming – and that’s not to mention the jargon involved in any choice!

This article will break down what a balloon payment is, how they work, and whether they’re right for you. By demystifying one of the more confusing terms associated with car finance, we’ll help you to decide whether car finance with a balloon payment is right for you.

What is a balloon payment?

In car finance terms, a balloon payment is a one-off lump sum that you pay to your lender at the end of certain finance agreements.

Both Personal Contract Purchase (PCP) and lease agreements have a final balloon payment that you can make at the agreement’s end. Making this payment means that you’ll own the car outright.

How do balloon payments work?

With both PCP and lease agreements, you’ll face a balloon payment at the agreement’s end (plus an option to purchase fee and possible admin fees).

Be aware that with PCP, a balloon payment is optional – you don’t have to pay it. You can choose to hand the car back to the lender or opt for a new finance agreement on another car. With a lease agreement, a balloon payment is not optional.

The amount you’ll pay for your balloon payment is calculated according to your lender’s estimation of your car’s depreciation. This is known by many names – the ‘Guaranteed Future Value’ (GFV), ‘Guaranteed Minimum Future Value’ (GMFV) and ‘Residual Value’ (RV). We’ll call it by the GMFV here.

The GMFV predicts the value of your car at the end of your finance agreement. Your lender will estimate this based on factors including the vehicle make and model, yearly mileage estimates, and the length of your agreement.

The GMFV (the balloon payment) is a fixed cost that’s written into your car finance contract. It can’t fluctuate based on your car’s actual value.

As such, even if your car is worth less at the end of your agreement than the GMFV estimation through no fault of your own, you don’t have to pay to make up the difference. Alternatively, if your car is worth more, you can find yourself in positive equity. This allows you to either make the final payment and sell the vehicle on for a profit – or put that equity towards another car finance agreement with the same lender.

What are the benefits of car finance with a balloon payment?

Don’t forget to check out our guide to the eight advantages and disadvantages of a balloon payment for a more comprehensive breakdown of their pros and cons.

Lower monthly payments

Compared to car finance agreements like Hire Purchase (HP), car finance with a final balloon payment has lower monthly payments.

You get to own your vehicle

If you love your vehicle and want to keep it, you can! Otherwise, you have two options available to you. You could part-exchange the vehicle for a newer, more modern vehicle, or simply hand the keys back, as long as the vehicle is in good condition, in line with the contract terms and within the agreed mileage.

What are the drawbacks of car finance with a balloon payment?

Usage restrictions

Car finance agreements like PCP do have vehicular usage restrictions. These may include a yearly mileage limit, and you’ll pay extra if you incur excessive damage.

These restrictions are established because of your lender’s prediction of your car’s GMFV. If you breach these restrictions, you can impact this estimation, and will be penalised.

Payment shock

A car finance agreement with a balloon payment means you’ll pay lower monthly instalments. However, this can mean that the balloon payment is expensive, and you may find yourself experiencing payment shock.

If you do find yourself in this position, you can benefit from balloon payment finance.

Not ideal for those with lower credit ratings

At My Car Credit, we understand that not all drivers have exceptional credit scores, and thanks to our wide range of lenders, we can accommodate all kinds of credit profiles.

If your credit score is less than ideal, you’re less likely to qualify for car finance with a balloon payment. Therefore an agreement without a balloon may be more suitable.

What happens if you can’t afford your balloon payment?

There can be any number of reasons why you may find yourself unable to pay your finance agreement’s final balloon payment.

My Car Credit understands that not all drivers may have the cash upfront to be able to make your balloon payment. Balloon payment finance provides one solution, working just like a car finance agreement. By breaking down the balloon payment’s lump sum into manageable monthly repayments, you have better budgetary control.

Use our online calculator to receive an instant no-obligation decision on balloon payment finance. Our initial credit check won’t impact your score, and we’ll leverage our large panel of lenders to find a deal that’s best for you. Please note that should you progress, some lenders may perform a hard search on your credit file.

Is a balloon payment right for me?

Car finance agreements with a balloon payment have various advantages. From lower monthly repayments to a guarantee of your vehicle’s future value, having an agreement with a balloon payment can be beneficial. Plus, with PCP finance, you don’t have to make the final lump sum – you can enter another finance agreement on a different car with the same lender. This is great for people who like to regularly update their wheels.

With that said, if you’ll struggle with usage limits or are prone to damaging your car, you may need to consider your options. Plus, you’ll have to evaluate your financial situation. Plan ahead to ensure that you can make the final balloon payment or consider balloon payment finance to avoid facing payment shock.

Wondering if you are eligible for My Car Credit car finance?

Do the maths on your next car with our handy online calculator and discover how My Car Credit can help you find the right car finance.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Can I Finance an Automatic Car?

How Much Car Finance Do I Qualify For?

How Many Years in a Car Loan Term?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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8 Advantages and Disadvantages of a Balloon Payment

Shiny car bought using a balloon payment

How do you know if a car finance agreement with a balloon payment is right for you? The first step is to understand the advantages and disadvantages of a balloon payment. Read on as we look at 4 advantages and 4 potential disadvantages.

What is a balloon payment?

A balloon payment is the one-off lump sum, plus an option to purchase and possible admin fees, that you can pay at the end of certain car finance agreements like PCP. By making this payment, you’ll own the car outright.

Balloon payments aren’t obligatory with PCP – at the end of your finance agreement, you can always hand the car back, or choose another finance agreement on a different car.

Any balloon payment is calculated on the expected depreciation of your car (also known as the Guaranteed Minimum Future Value or Residual Value).

The GMFV or RV predicts what the car will be worth at the end of an agreement, based on your usage estimates. The factors that will impact its value include the make and model of the car, your yearly mileage estimates, and the length of your finance agreement.

The GMFV or RV is a fixed cost – it won’t fluctuate based on your car’s value.

Advantages of a balloon payment

Lower monthly repayments

Other car finance agreements like Hire Purchase (HP) give you the option of owning the vehicle at the agreement’s end.

However, with HP, you don’t pay a final balloon payment. As such, you’ll face higher monthly repayments than you would with a car finance agreement that has a final balloon payment.

Fixed cost

A balloon payment is calculated based on your lender’s estimation of depreciation in your car’s value – the Guaranteed Minimum Future Value or Residual Value. This is a fixed cost – it won’t fluctuate throughout your car finance agreement, even if your car’s value changes.

Sometimes, finance companies may get your car’s value (its GMFV or RV) wrong. It can depreciate in value more than expected, meaning you’re in negative equity.

However, the balloon payment is a fixed cost. As such, if you find yourself in negative equity through no fault of your own (not breaching usage restrictions), you still won’t face any additional fees.

Potential for positive equity

Your car’s value may depreciate less than was predicted.

If your lender undervalues your car’s GMFV or RV, you could, therefore, find yourself in positive equity. This means that you find yourself at the end of an agreement with a vehicle that’s worth more than your finance company estimated.

You can then choose to make the final balloon payment and sell the car on for a profit. Alternatively, if you stay with the same finance company, you can put this positive equity towards the deposit on a new vehicle.

You get to own your vehicle!

If you love your car and want to keep it, you can! Otherwise you have two further options available to you. You could part-exchange the vehicle for a newer or different model or simply hand the keys back, as long as the vehicle is in good condition, in line with the contract terms and within the agreed mileage.

Disadvantages of a balloon payment

Usage restrictions

Car finance with a final balloon payment typically requires usage restrictions. You may be expected to keep under a certain mileage, and you are expected to return the car in good condition at the agreement’s end.

If you go over these usage restrictions, you’ll be penalised. This is because your lender will base your car’s depreciation value on these usage restrictions. Breaching them will impact the accuracy of this value, which can have financial ramifications.

Not ideal for those with lower credit scores

If your credit score is less than ideal, you’re unlikely to qualify for car finance agreements with a balloon payment.

Therefore an agreement without a balloon may be more suitable if your credit rating is low.

Not optional for lease agreements

With PCP, the balloon payment is optional. However, this payment isn’t optional with a lease purchase agreement – you’ll have to pay the final lump sum.

Expensive final payment

The balloon payment can be a hefty sum. You may not have access to the cash needed to make this payment.

However, you can choose to refinance your balloon payment in this instance.

How do I refinance my balloon payment?

With balloon payment finance, you’re refinancing your balloon payment. This allows you to break down the lump sum into affordable monthly payments. You’ll also have an extended loan time, and you may be able to access better interest rates.

Wondering if you are eligible for My Car Credit car finance? Do the maths on your next car with our handy online calculator.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Check for car finance without affecting your credit score

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Is There a Maximum Age Limit for Car Finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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What is the Oldest Car a Bank Will Finance?

Love the charm and character of older cars but unsure about whether they’re eligible for finance? In this hands-on guide we’ll answer “what is the oldest car a bank will finance”. Our goal – to help you get behind the wheel of a car with its own unique story to tell.

The golden numbers

While there’s no hard and fast rule about what the oldest car a bank will finance is, 10 years is generally considered the maximum age for standard agreements. Most high street banks require cars to be no more than 10 years old, with no more than 100,000 miles on the odometer.

Exceptions to the rule

While 10 years and 100,000 miles are considered the maximums for bank-funded auto finance, there are some exceptions to the rule. For example, classic cars are often eligible for finance agreements. What’s the difference between ‘classic’ and ‘older’ cars? There are similarities between the two, however most banks see them as very different candidates for auto finance.

Defining a ‘classic’ car

According to HMRC, classic cars must be at least 15 years old and have a minimum value of £15,000. This is ultimately what sets classics apart from older vehicles. Unless the car meets these prerequisites, banks will generally be reluctant to approve auto finance.

Prefer the gleam of a newly polished hood ornament over the glow of a next-gen touchscreen dashboard? You’re not alone. The UK is a nation of classic car enthusiasts, with the latest stats from the Federation of British Historic Vehicle Clubs (FBHVC) revealing there are more than 1.5 million classics currently registered in the UK.

Dreaming of securing the keys to a pristine pre-war Bentley or a British-built Lotus Elise? Read on to find out more about what the oldest car a bank will finance is and how auto loans work for classic vehicles.

Understanding classic car finance

Unlike traditional auto loans, classic car finance operates within a niche market. Agreements are often tailored to meet the unique needs of vintage automobile enthusiasts, which means financing a classic car can be a little different from the usual process.

Factors influencing classic car finance

Several factors come into play when determining the oldest car a bank will finance. These can include:

Age of the vehicle

One of the first variables banks assess is the age of the classic car. What is the oldest car a bank will finance? While there’s no set rule on the maximum age of a vehicle eligible for financing, most banks tend to favour classics from the post-war era onwards. That said, some specialty lenders may extend financing for exceptionally rare or historically significant vehicles, regardless of age.

Condition

The condition of the classic car plays an important role in securing financing. Banks are more likely to finance well-maintained or meticulously restored classics with documents to back up their past.

Rarity

Rarity, historical significance and desirability among collectors can increase the likelihood of securing finance for older vehicles.

Appraisal and valuation

Before extending financing for a classic car, banks often request a comprehensive appraisal and valuation of the vehicle. This helps determine the market value, authenticity and overall condition of the classic car. Why does this matter? It helps provide banks with confidence in the value of the asset they’re financing and potential resale value.

Types of classic car financing

Classic car financing options vary depending between lenders, so it’s important to do your research and find the right fit. Banks generally take a more conservative approach to finance and stick with popular options like Hire Purchase and Personal Contract Purchase.

Hire Purchase (HP)

This option sees you make a deposit upfront, followed by fixed monthly payments. These payments cover the full purchase price of the classic car, plus interest. Once the final payment is made, legal ownership of the vehicle is transferred to the borrower.

Personal Contract Purchase (PCP)

PCP offers lower monthly payments than HP, as you effectively lease the classic car for a set period of time. At the end of the agreement, you have the option to return the vehicle, trade it in for a different model, or make a balloon payment along with and option to purchase and possible admin fees, to take ownership.

Personal Loans

Personal loans can be a good way to finance a classic car purchase and provide lump-sum financing for the total cost of the vehicle. In exchange, you’ll commit to fixed interest rates and repayment terms.

Navigating your classic car finance journey

From sleek Jaguar E-Types to James Bond-worthy Aston Martins, classic cars are genuine head turners. However, complications can arise when attempting to secure finance. Here are some expert tips on how to improve your chances of success.

Research and due diligence

Before approaching a bank for classic car financing, take the time to thoroughly research the make, model and historical significance of the vehicle. Gather as much documentation as possible, including appraisal reports, maintenance records and ownership history. The more documents you have to support your finance application, the better!

Consider specialty lenders

Feeling disheartened after your application for auto finance has been knocked back? Remember, the buck doesn’t necessarily stop with high street banks. Consider working with a broker like My Car Credit to unlock access to specialty lenders with experience financing classics. Unlike banks which often adopt a conservative and inflexible approach, brokers work with a wide range of lenders, including lenders willing to finance vintage automobiles.

Insurance requirements

Your classic car financing agreement may come with specific insurance requirements to protect the value of the asset and minimise risk for the lender. For this reason, many lenders will insist you have comprehensive classic car insurance in place before finalising the agreement.

The bottom line on financing old cars

Ultimately, there’s no definitive answer to “what is the oldest car a bank will finance?” That said, there are some benchmarks to keep in mind. Banks will generally knock back applications for auto finance if the car is more than 10 years old, with more than 100,000 miles on the odometer. Unless the car qualifies as a ‘classic’, which means it must be at least 15 years old and have a minimum value of £15,000.

Secure the keys to a classic with My Car Credit

Got your heart set on a classic car? Whether you’re dreaming of a mid-century Chevrolet or a Mini in mint condition, My Car Credit is here to help you enjoy the thrill of vintage motoring. We work with a large panel of lenders to maximise your chances of success, with classic car finance options including high street banks as well as non-traditional lenders.

Try our handy online finance calculator to find out more about your options.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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What Does ‘Finance’ Mean When Buying a Car?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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How Does Classic Car Financing Work?

Whether it’s a first generation Ford Escort or an iconic Porsche 911, classic cars hold a special place in the hearts of motoring enthusiasts. Yet for many Brits, the path to classic car ownership can seem complex, especially when it comes to financing. Not to worry, we’re here to help.

In this practical guide, we’ll answer all your questions about how classic car financing works. We’ll unpack how classic car loans work, break down the application process and explore the different financing options available in the UK.

Understanding classic car financing

How does classic car financing work compared to standard auto loans? While the pair share many similarities, it’s important to understand the differences between the two. Classic car loans are designed with vintage automobiles in mind, which means there are some unique factors that come into play:

Age

In general, a car must be at least 15 years old to be considered a classic. This is the age cited by HMRC in the official definition of a classic car.

Vintage appeal

While cars become eligible for classic status at 15 years or older, lenders also factor in vintage appeal. Vehicles from the post-war era, like the much-loved Morris Minor and iconic Aston Martin Atom, are generally favoured by lenders. That said, it’s not unusual for exceptions to be made for exceptionally rare or unique models.

Condition

The overall condition of cars plays an important role in securing finance. For example, lenders are far more likely to finance a Morgan Plus 4 roadster in mint condition than the same model in need of serious work.

Documentation

Lenders won’t always take your word for it when it comes to factors like age and condition. This is where documentation comes in useful. Anything related to the vehicle’s background, service history and overall vintage appeal can help improve your chances of securing classic car finance.

Market value

Lenders will usually assess the market value of the classic car before extending financing. Potential appreciation may also be considered. Typically, lenders will want to see a value of at least £15,000. Factors like condition, rarity, historical significance, documentation and desirability can all influence the appraised value of the car and ultimately, eligibility for finance.

Classic car financing options

Now you know more about how classic car financing works, let’s take a closer look at some of the different payment plan options available in the UK. Like standard auto loans, classic car finance agreements are designed to cater to different needs and preferences.

Hire Purchase (HP)

Simple and easy, HP agreements start with an initial deposit followed by fixed monthly payments to repay the total purchase price of the classic car, plus interest. When the contract is complete and the loan is fully paid off, legal ownership of the vehicle transfers to the driver. The HP model essentially sees the lender purchase the car outright, then provide the borrower with a structured payment plan.

Personal Contract Purchase (PCP)

Lower monthly payments make PCP one of the most popular ways to finance a classic car. Instead of covering the total purchase price of the car, monthly payments cover the cost of renting the vehicle from the lender for a set period, generally three to five years. At the end of the contract, you have the option to make a ‘balloon’ payment to cover the remaining value of the vehicle and purchase the car outright. Alternatively, simply return the vehicle to the lender, as long as the vehicle is in good condition, in line with the contract terms and within the agreed mileage.

Personal Loans

How does classic car financing work for a personal loan? This option sees lenders extend lump-sum financing to cover the full purchase price of a classic car. As well as the total purchase price, monthly repayments factor in interest and other fees.

Get behind the wheel of a classic with My Car Credit

Ready to embrace the joys of vintage motoring? At My Car Credit we specialise in securing auto finance loans for all kinds of vehicles, including classics. Give our online finance calculator a try and find out how My Car Credit can help you obtain that classic car of your dreams.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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How Much Car Finance Do I Qualify For?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Incomplete documentation

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Communication breakdown

Tips for speeding up the process

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Stay on top of communication

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Used car finance has become an increasingly popular way of drivers getting behind the wheel of a nearly-new vehicle. Used car hire purchase is just one type of used car finance – and one of the most popular.

What is used car hire purchase?

What are the advantages of used car hire purchase?

1. Flexibility

2. Low initial deposit

3. Cost effective

4. Accessibility

5. No balloon payment

6. Better control of finances

7. No usage restrictions

Does used car hire purchase have disadvantages?

Find the right used car hire purchase for you

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